Dear Editor,
In his regular column last Sunday (7th February), Clive Thomas reiterated that Guyana’s 2015 unit cost of production of sugar was US 45 cents/lb.
Labour costs have been cited repeatedly by the establishment as a major contributor to this high cost. Another key variable, which has attracted rather less attention, is the yield. As the yield declines, the cost of production rises. Where available, the data suggest that cane yields on land cultivated by GuySuCo have declined significantly. At Wales Estate, for example, the yield dropped from 68 TCH (tonnes cane per hectare) in 2008 to 51 TCH by 2015.
Dr Thomas sketched out GuySuCo’s plans for Wales in about 100 words in the closing paragraphs of his column, providing few details and no costings. What will each of these initiatives cost? What will the new route to Uitvlugt for canes from the Wales area cost? What sum has been set aside for redundancies, re-training programmes etc? What is the total outlay expected to be? How will it compare with the proposed ‘saving’ envisaged by the closure of Wales? What templates or examples are these initiatives based on?
Why are GuySuCo’s plans for Wales shrouded in mystery? Why the cloak of secrecy? Since the announcement of the closure of Wales Estate, GuySuCo has conspicuously failed to elaborate on its plans for the estate, although there are 1800 jobs at stake and the livelihoods of a further 800-900 private cane farmers hang in the balance. The corporation’s continued reticence lends weight to impressions and allegations that the closure was based on a ‘whim’ and that a post-facto rationale, as well as a clear plan of action post-closure, are being hastily improvised.
The present uncertainty is sending ripples through the entire industry and, by extension, all agricultural industries in Guyana. Agriculture is arguably still the bedrock of our economy and society, particularly in rural areas. We undermine it at our peril.
If, for example, there is any intention to resuscitate the sugar industry in any guise, the corporation will depend on private cane farmers to augment the yield at Skeldon and other estates, in order to make them viable. The message sent by their actions at Wales will not inspire confidence or co-operation.
Yours faithfully,
Isabelle de Caires
